Monday, 26 October 2020

Why onion prices are shocking in the Indian retail market?

Onion Prices update

These days, onion prices are shocking in the Indian retail market. Onion prices in the country have reached 70–120 rupees

. In order to curb the prices going towards the government, the necessary Commodity is being raised. 

32 thousand ton onion has been rotten

At the same time, quoting sources, it has been found that out of one lakh ton buffer stock of onion, 32 thousand ton onion has been rotting. In the past too, questions have been raised about the rotting of government onions in government warehouses. Stocked onion of rabi crop is being sold in the market. In general, there is pressure on prices in the consuming areas during this time, but the rains have caused a lot of wastage in the major producing areas, affecting the supply. 

According to the data of the ministry provided in 2020, a high or shocking jump in the retail prices of onions in the south and western regions of the country. Onions retail prices in the country have reached close to Rs 100 per kg in some places. The rising inflation of onions during the festive season to overcome the prices the central government has now offered to supply from the buffer stock. 

Central Govt. asked to state govt on onions

The central government has verified with the states and UT to lift onion from the central buffer stock. The data according to the Ministry of Consumer Affairs, on October 22, 2020, retail onion prices in Mumbai were Rs 86/kg, Rs 83/kg in Chennai, Rs 70/kg in Kolkata, and Rs 55/ kg in Delhi and now it crosses to 70/kg in Delhi. At the same time prices in some places in Kerala were also recorded near Rs 100 per kg.

Consumer Affairs Secretary Leena Nandan

Consumer Affairs Secretary Leena Nandan said that Assam, Andhra Pradesh, Bihar, Chandigarh, Haryana, Telangana, and Tamil Nadu have shown interest in it and they want to take a total of 8,000 tonnes of onions from the buffer stock. She said that the ministry is awaiting a response from other states.

Safe reserves of only 25 thousand tons of onions

The government has only 25 thousand tons of onion reserves (buffer stock) left. The stock will expire by the first week of November. NAFED Managing Director Sanjeev Kumar Chadha share this information last Friday. Retail prices of onions have already crossed the Rs 75 a kg in the country. In such a situation, to ensure its availability and to control the prices of onions NAFED is releasing onion from safe stock in the market.

Purchase of about one lakh tonnes of onions

The Nafed Government is ready to issue the stock for use during times of crisis. Nafed had purchased about one lakh tonnes of onions for this year. So far, 43 thousand tonnes of onions have been released from the buffer stock in the market. After the destruction of some stocks, about 25 thousand tons of onions are left in stock, which will last till the first week of November.

In the current year 2020 January,  Ram Vilas Paswan (Union Consumer Affairs, Food, and Public Distribution Minister) had said that onion is rotting in the central Government stock and states have refused to take onions and now in last three-month onion prices increased drastically due to the deteriorating onion crop due to heavy rains during in monsoon season. Now the central government has decided to import about one lakh tonnes of onions so that prices can be controlled.

The price will fall due to the arrival of Kharif

The government has so far brought 40,000 tonnes of onions to the market from the buffer stock of 1,00,000 tonnes made from the purchase made from the Rabi crop of 2019-20. Kharif season onion is expected to reach the local Mandis soon and the government also hopes that after the estimated Kharif crop production of 37 lakh tonnes comes to the market, the supply will increase in the market, which will reduce the prices. 

Meanwhile, the government is also considering the import of onions and by December 15, the norms of fumigation and phytosanitary have been relaxed.

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